[dingo222]

Disclaimer: I'm no financial planner, loan officer, investment banker, broker, or anything else.....I did stay at a holiday inn express once (thanks crew scheduling)



what kind of loan are you taking? If it's an education loan like a stafford, or a key loan, the payments should be low and spread over a longer term. If it's from "uncle Louie" the loan shark, you may need to get it back a bit quicker. I still have like 7G worth of student loans from college through Salie Mae, and I'm paying 81 a month or something like that over 8 more years. A key loan should be about the same.

Now here is the deal from my point of view. Pay as much as you can afford up front, to reduce the amount you have to borrow. But, don't pay so much out of pocket that you have none left to live on. Get a good interest rate if possible, and pay down the balance of the loan ASAP. I make 2 payments month on an FO salary, sometimes 3 payments a month. Interest rates fluctuate and have been on the rise recently. It's easy to ride a 10 yr repayment plan, but if you look at a how much you are paying in interest over the term, you'd probably be shocked. By all means, do not default!!!!!!!!!!!!!!!!!!!!!!!!!!!!! If you can't make a payment, call the loan company and tell them! THey are usually flexible if they know what's going on. If they don't, you may default on the loan and you will not borrow any money from anyone for a long time after that!

I'd also make sure that you are borrowing money to reach a goal that will produce money in return. If you have a regular job and just want a rating, that's fine. But if you are looking at flying for a job, will the commercial rating get you to a place where you can earn income, or will you also need to borrow for a CFI rating, multi, or whatever. Take all that into account, and the cost of living while you are training. Add 25% to whatever number you come up with just for comfort.

If you get the chance, put the loan money in some sort of interest bearing account. Too many people have put all the money on account at the school, only to have the place close its doors. Don't do it in the newest, coolest plane the school offers. Just get it done.

Best of luck!